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Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Restaurant Information by Ownership Type The following table presents restaurant information by ownership type:
Restaurants at December 31,
2018

 
2017

 
2016

Conventional franchised
21,685

 
21,366

 
21,559

Developmental licensed
7,225

 
6,945

 
6,300

Foreign affiliated
6,175

 
5,797

 
3,371

Franchised
35,085

 
34,108

 
31,230

Company-operated
2,770

 
3,133

 
5,669

Systemwide restaurants
37,855

 
37,241

 
36,899
Disaggregation of Revenue The following table presents revenue disaggregated by revenue source (in millions):

Years ended December 31,
 
2018

 
2017

 
2016

Company-operated sales:
 
 
 
 
 
 
U.S.
 
$
2,664.6

 
$
3,260.4

 
$
3,742.6

International Lead Markets
 
3,961.6

 
4,080.0

 
4,278.5

High Growth Markets
 
2,847.8

 
4,591.5

 
5,377.9

Foundational Markets & Corporate
 
538.7

 
787.0

 
1,896.0

Total
 
$
10,012.7

 
$
12,718.9

 
$
15,295.0

Franchised revenues:
 
 
 
 
 
 
U.S.
 
$
5,001.2

 
$
4,746.0

 
$
4,510.1

International Lead Markets
 
3,638.5

 
3,260.3

 
2,944.9

High Growth Markets
 
1,140.9

 
941.7

 
782.8

Foundational Markets & Corporate
 
1,231.9

 
1,153.5

 
1,089.1

Total *
 
$
11,012.5

 
$
10,101.5

 
$
9,326.9

Total revenues:
 
 
 
 
 
 
U.S.
 
$
7,665.8

 
$
8,006.4

 
$
8,252.7

International Lead Markets
 
7,600.1

 
7,340.3

 
7,223.4

High Growth Markets
 
3,988.7

 
5,533.2

 
6,160.7

Foundational Markets & Corporate
 
1,770.6

 
1,940.5

 
2,985.1

Total
 
$
21,025.2

 
$
22,820.4

 
$
24,621.9

*
Revenues for 2018 reflected a negative impact of approximately $42 million as a result of the change in timing of recognizing revenue associated with initial fees.
Share-Based Compensation Expense and Effect on Diluted Earnings Per Common Share Share-based compensation expense and the effect on diluted earnings per common share were as follows:
In millions, except per share data
2018

 
2017

 
2016

Share-based compensation expense
$
125.1

 
$
117.5

 
$
131.3

After tax
$
108.1

 
$
82.0

 
$
89.6

Earnings per common share-diluted
$
0.14

 
$
0.10

 
$
0.11
Weighted-Average Assumptions The following table presents the weighted-average assumptions used in the option pricing model for the 2018, 2017 and 2016 stock option grants. The expected life of the options represents the period of time the options are expected to be outstanding and is based on historical trends. Expected stock price volatility is generally based on the historical volatility of the Company’s stock for a period approximating the expected life. The expected dividend yield is based on the Company’s most recent annual dividend rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with a term equal to the expected life.

Weighted-average assumptions
 
2018

2017

2016

Expected dividend yield
2.6
%
3.1
%
3.0
%
Expected stock price volatility
18.7
%
18.4
%
19.2
%
Risk-free interest rate
2.7
%
2.2
%
1.2
%
Expected life of options (in years)
5.8

5.9

5.9

Fair value per option granted
$
23.80

$
16.10

$
13.65
Activity in Goodwill by Segment The following table presents the 2018 activity in goodwill by segment:
In millions
U.S.

International
Lead Markets
 
High Growth
Markets
 
Foundational Markets
& Corporate
 
Consolidated
 
Balance at December 31, 2017
$
1,274.0

 
$
750.5

 
$
316.7

 
$
38.5

 
$
2,379.7

Net restaurant purchases (sales)
2.5

 
20.2

 
(1.3
)
 
(0.3
)
 
21.1

Impairment losses
—

 
—

 
—

 
(1.1
)
 
(1.1
)
Currency translation
 
 
(52.4
)
 
(14.1
)
 
(1.7
)
 
(68.2
)
Balance at December 31, 2018
$
1,276.5

 
$
718.3

 
$
301.3

 
$
35.4

 
$
2,331.5
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis The following tables present financial assets and liabilities measured at fair value on a recurring basis by the valuation hierarchy as defined in the fair value guidance:
December 31, 2018
 
 
 
 
 
 
In millions
Level 1*

 
Level 2

 
Carrying
Value
 
Derivative assets
$
167.1

 
$
39.2

 
 
$
206.3

Derivative liabilities
 
 
$
(16.6
)
 
 
$
(16.6
)
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
In millions
Level 1*

 
Level 2

 
Carrying
Value
 
Derivative assets
$
167.3

 
$
0.6

 
 
$
167.9

Derivative liabilities
 
 
$
(45.4
)
 
 
$
(45.4
)
*
Level 1 is comprised of derivatives that hedge market driven changes in liabilities associated with the Company’s supplemental benefit plans.
Fair Values of Derivative Instruments Included on Consolidated Balance Sheet The following table presents the fair values of derivative instruments included on the Consolidated Balance Sheet as of December 31, 2018 and 2017:
  
Derivative Assets
 
Derivative Liabilities
In millions
Balance Sheet Classification
 
2018

 
2017

 
Balance Sheet Classification
 
2018

 
2017

Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
Foreign currency
Prepaid expenses and other current assets
 
$
30.9

 
$
0.5

 
Accrued payroll and other liabilities
 
$
(0.7
)
 
$
(31.0
)
Interest rate
Prepaid expenses and other current assets
 
 
 
 
 
Accrued payroll and other liabilities
 
(0.1
)
 
(0.3
)
Foreign currency
Miscellaneous other assets
 
3.8

 
0.1

 
Other long-term liabilities
 
(1.3
)
 
(1.4
)
Interest rate
Miscellaneous other assets

 
—

 
—

 
Other long-term liabilities
 
(11.8
)
 
(5.9
)
Total derivatives designated as hedging instruments
 
$
34.7

 
$
0.6

 
 
 
$
(13.9
)
 
$
(38.6
)
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
Equity
Prepaid expenses and other current assets


 
$
167.1

 
$
—

 
Accrued payroll and other liabilities
 
$
(2.7
)
 
$
(1.3
)
Foreign currency
Prepaid expenses and other current assets


 
4.5

 
—

 
Accrued payroll and other liabilities
 
—

 
(5.5
)
Equity
Miscellaneous other assets
 
—

 
167.3

 
 
 
 
 
 
Total derivatives not designated as hedging instruments
 
$
171.6

 
$
167.3

 
 
 
(2.7
)
 
$
(6.8
)
Total derivatives
 
$
206.3

 
$
167.9

 
 
 
$
(16.6
)
 
$
(45.4
)
Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income The following table presents the pre-tax amounts from derivative instruments affecting income and AOCI for the year ended December 31, 2018 and 2017, respectively:
 
Location of Gain or Loss
Recognized in Income on
Derivative
 
Gain (Loss)
Recognized in
Accumulated OCI
 
Gain (Loss) Reclassified
into Income from
Accumulated OCI
 
Gain (Loss) Recognized in
Income on Derivative
 
 
 
 
 
 
 
 
In millions
 
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Foreign currency
Nonoperating income/expense
 
$
60.0

 
$
(76.0
)
 
$
(2.2
)
 
$
(13.7
)
 
 
 
 
Interest rate
Interest expense
 
—

 
—

 
(1.2
)
 
(0.5
)
 
 
 
 
Cash flow hedges
 
$
60.0

 
$
(76.0
)
 
$
(3.4
)
 
$
(14.2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency denominated debt
Nonoperating income/expense
 
$
682.9

 
$
(1,599.7
)
 
$
—

 
$
—

 
 
 
 
Foreign currency derivatives
Nonoperating income/expense
 
1.3

 
(8.9
)
 
—

 
8.6

 
 
 
 
Foreign currency derivatives(1)
Interest expense
 
 
 
 
 
 
 
 
 
$
4.0

 
$
—

Net investment hedges
 
$
684.2

 
$
(1,608.6
)
 
$
—

 
$
8.6

 
$
4.0

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency
Nonoperating income/expense
 
 
 
 
 
 
 
 
 
$
22.1

 
$
(24.2
)
Equity
Selling, general & administrative expenses
 
 
 
 
 
 
 
 
 
0.4

 
92.7

Undesignated derivatives
 
 
 
 
 
 
 
 
 
$
22.5

 
$
68.5

(1)The amount of gain (loss) recognized in income related to components excluded from effectiveness testing.